Evaluation of the mining projects under economic uncertainties using multidimensional binomial tree

Nowadays, economic uncertainties have an indispensable role in mining evaluation projects, so the evaluation of a mining project without considering if the available uncertainties are incorrect and unreliable. Metal price uncertainty and operating costs uncertainty are the most important parameters in economic uncertainty. Numerous research studies have been carried out for price uncertainty, but there is no noticeable research on the simultaneous effects of operating cost and price uncertainties on the evaluation process. To solve this problem, a new evaluation method – pyramid technique – was developed based on the multidimensional binomial tree method. The pyramid technique can evaluate the mining projects under the situation of multi-uncertainties.